US Stocks Rebound as Oil Prices Ease and Inflation Data Comes in Near Expectations

US stocks rebounded on Friday after oil prices eased and inflation data came in near expectations, helping to calm market concerns. The S&P 500 climbed 0.9%, snapping a four-day losing streak, while the Dow Jones Industrial Average jumped 509 points, or 1%. The Nasdaq composite rose 1%.

The pullback in oil prices, which had reached their highest levels since May due to tensions with Iran, took some pressure off inflation, which remains high. A report showed that US consumers paid 3.4% more for gasoline, food, and other living costs last month compared to the same period a year earlier.

Economists expected this level of inflation, but it still sparked concerns about the Federal Reserve's commitment to keeping prices under control. The Fed is set to meet next week and may hike interest rates to combat inflation. This move could help slow down the economy and reduce fuel for further price increases.